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HomeMy WebLinkAbout2021-04-05 Airport Committee MinutesCity of Bangor Airport Committee Virtual Meeting April 5, 2021 Meeting Minutes The following City Councilors attended: Acting Airport Committee Chair Susan Hawes, Sarah Dubay and Jonathan Sprague. Also in attendance were City Manager Cathy Conlow, Assistant City Manager Courtney O’Donnell and Airport Director Tony Caruso. Agenda and Discussion: 1. Lease Agreement – CCF Ventures d/b/a Maine Aero Services Airport Director Tony Caruso asked for Committee approval of an Order authorizing the City Manager to execute a lease agreement with CCF Ventures Holdings, Inc. d/b/a Maine Aero Services Inc. Charles Feaga, the owner of Maine Aero Services, Inc., wants to continue to operate and provide small aircraft sales and maintenance services at the Airport, an important service for general aviation aircraft. If approved, this Order will authorize a lease agreement for the rental of Hangar #115 and Bay #2 of the Corporate Hangar #123 at the Airport. Motion made, seconded and approved by unanimous roll call vote. The Lease Agreement will be presented to the City Council for final approval. 2. Lease & Use Agreements – Domestic Airlines Airport Director Caruso asked for Committee approval of an Order authorizing the City Manager to execute 1st Amendments to the Lease & Use Agreements with Allegiant Air, American Airlines, Delta Airlines and United Airlines. These will be separated into four Orders when they are presented to the City Council. In July, 2016, the Parties agreed to a new 5-year term, with options to extend for two 1-year periods. Given the uncertainty in the economy due to the COVID-19 pandemic, the Parties desire to exercise the option of a 1-year extension. Extending these agreements provides all parties the ability to monitor the economic and financial situation to better manage through this unprecedented period. The Parties intend to negotiate in good faith during this extension period. All terms and conditions of the current agreements shall remain in effect during the next 12 months. Motion made, seconded and approved by unanimous roll call vote. The Orders will be presented to the City Council for final approval. 3. Resolve – Application and acceptance of a grant for relief funding for Airport Concessions Airport Director Caruso presented a Resolve to ratify and authorize the application for and acceptance of a grant in the amount of $69,641 from the FAA under the Coronavirus Response and Relief Supplemental Appropriations Act (CRRSA). If approved, CRRSA funds will be used to provide relief from rent and minimum annual guarantee (MAG) obligations to eligible airport concessions. These concessions include the car rental agencies, food & beverage concession, gift shop concession, the terminal advertising concession, the parking concession and the hotel concession. The airport shall provide this relief funding to each eligible concession on a proportional share of the total amount of rent and MAG of all eligible airport concessions. Given the requirement to sign and accept this grant application by March 18, 2021, this Resolve will ratify the City Manager's execution. Motion made, seconded and approved by unanimous roll call vote. The Resolve will be presented to the City Council for final approval. 4. Discussion - Runway rehabilitation project Our planned runway rehabilitation project is scheduled during fiscal years 2023-2024. The Master Plan Update should be ready in late summer-early fall. The Plan identifies new projects eligible for AIP funding. Normally, the FAA requires us to put out an RFQ for Airport Engineering Services when the Master Plan is approved. Given the timeline for design and engineering work on the runway rehabilitation project, we have received FAA approval to proceed with the RFQ now for that project. 5. Update – LD 1086 discussion Discussions on this legislation, which will provide bond funding for CBP facilities in Portland and an international bonded warehouse in Bangor, are continuing. We have updated it to provide a more timely economic impact statement and are looking at a more strategic, phased-in approach. 6. Airport Advertising and Marketing February passenger counts remain about 65% below 2020 levels; consistent with industry trends. The good news are recent announcements from Allegiant that they are adding service to Fort Lauderdale and Delta who will be adding service to Boston, Atlanta and Detroit. Load factors continue to increase slightly; again consistent with industry trends. Operations statistics are driven by our military support, both in terms of number of operations and fuel sales. We expect a busy summer season, so expect to see fuel sale increases to resellers and Into Plane. We received very positive comments from UPS about our staff support through the holiday season. Meeting Adjourned